How Companies Decide Who Gets Promoted

 

Business travel has always been a vital part of the corporate world. Employees travel for many reasons, from client meetings and industry conferences to training programmes, exhibitions and incentive trips. But as companies become more budget-conscious, productive and sustainable, decisions about who gets to travel are becoming more strategic.

In fact, these days it’s probably not about whether the employee wants to or needs to go to an event when it comes to the decision to approve a business trip. Organisations consider the purpose of the trip, the employee’s role, expected business outcomes, cost and whether the same objective can be achieved without travel.

Visit Type

The first question companies typically ask is simple: Why does this guy need to travel?

Different types of travel deliver different business value. An employee may have to be physically present for a meeting with a key client, negotiations for a large contract or a site visit for a project. By contrast, a video call can work well for an internal meeting or a regular discussion.

Companies ponder if travel will really make a difference.

The decision for conferences and exhibitions may be based on what the employee is expected to achieve. Someone that’s there to just observe might be looked at differently than an employee that’s there to meet potential clients, represent the company, speak on a panel or develop partnerships.

The more the purpose of the trip is specified the easier it is to justify.

What matters is the responsibility and role

The employee’s role within the organisation also impacts travel decisions.

Some jobs will take you further away. Sales teams will probably have to visit clients and prospects regularly. Senior executives may travel for negotiation, investor meetings or strategic partnerships. Employees responsible for events and marketing may attend exhibitions and conferences while operations teams might visit factories, project sites or regional offices.

But not always does the boss get to go.

Companies are increasingly looking at who is best suited to achieve the objective of a particular trip. For example, a technical specialist can be more valuable in a detailed discussion with a client than a senior manager. Likewise, a younger employee who directly manages an account might be the right person to meet that client.

The choice is so often one of relevance, not hierarchy.

Return Travel Expected

Business travel is expensive. As well as flights and accommodation, companies may also cover the cost of local transport, meals, event registration, visas and other expenses.

Organisations are therefore increasingly looking at the anticipated return on travel.

This return need not be instantaneous revenue. Visiting can strengthen a relationship with a client, give you valuable knowledge of the industry, assist in developing your staff or create opportunities for future business.

For example, attending a large industry exhibition with an employee gives the firm access to potential clients, suppliers and market information in one place. Likewise, it is possible that an employee attending an international conference will gain expertise that can be useful to the wider organisation.

The more clearly identifiable the value, the more likely a company is to approve travel.

Budget Has a Big Say

Even with a strong business case for trips, budget is still a big factor.

Most organisations have travel policies that set out what employees are allowed to spend on flights, hotels, meals and transport. Some companies also allocate travel budgets for individual departments or teams.

When budgets tighten, managers may have to choose.

Instead of sending an entire team to an event, a company may send two representatives.” And then on their return they can share their learning, contacts and insights with colleagues.

The company’s financial situation can also play a role in travel decisions. In times of rapid growth, organisations may spend heavily on client visits, events and international expansion. During cost reduction periods travel may be limited to essential activities.

Is there a replacement for the trip, tech-wise?

Virtual communication has changed the way companies think about travel.

Video conferencing and digital collaboration platforms provide plenty of meeting opportunities, and employees are not required to travel. That doesn’t mean business travel is disappearing. Instead, companies have become more discriminating about when face-to-face interaction is valuable.

There may be routine updates virtually, internal discussions and introductory conversations. For important negotiations, relationship-building meetings, major events and complex discussions, physical presence can still be helpful.

So companies are increasingly asking, does the goal really require somebody to be in the room.

If a one hour virtual meeting can do the same thing then it is hard to justify spending money and employee time on a two day trip.

Staff Development and Performance

Many business trips are not for sales or operations.

Travel also provides an opportunity for companies to learn and grow professionally. Employees can attend training programmes, conferences, workshops or leadership meetings to develop new skills and be exposed to different markets.

In such cases managers may consider performance, potential and the relevance of the opportunity to the employee’s career.

An organisation may select an employee that can apply the knowledge from an event to a future project. This could be a stepping stone for bigger responsibilities and so, somebody else could be picked.

Travel can therefore be seen as a talent development tool, not just an operational expense.

Sustainability Is Increasingly a Factor in Decision Making

Environmental concerns are also beginning to influence corporate travel policies.

Many organisations have set sustainability targets including the reduction of emissions from business travel. This can motivate companies to combine multiple meetings into one trip, opt for rail over air travel for shorter distances or cut unnecessary journeys.

Some companies may prefer to hold regional events rather than send employees to international conferences if there are similar offerings closer to home.

This raises another question in the approval process: Is the value of the trip worth the environmental impact?

Equity and Availability of Travel Options

Corporate travel can be a valuable exposure for employees. Conferences, international meetings and industry events offer the opportunity to network, gain new skills and increase visibility within their organisations.

So companies have to think about the distribution of these opportunities.”

When the same employees are repeatedly selected for high-value events, other employees may have fewer opportunities for professional development. Some organisations try to get around this by rotating conference attendance, having clear criteria for selection or asking employees to explain how an event relates to their responsibilities.

Meaningful and equitable travel opportunities could be helped along by transparent decision-making practices.

The Decision Is Getting More Strategic

In the end who goes on the trip is really about what the organisation wants to achieve with the trip.

Companies are moving away from travel just because ‘this is how we’ve always done it’. Every journey competes for budget, employee time and organisation resources.

Therefore, the employee most likely to travel is not necessarily the most senior person or the person who travels the most often. It is increasingly the person who can bring the most value by being there.

For business, this change makes corporate travel more purposeful. And for employees, understanding the ‘why’ behind travel decisions can help them to see every approved trip as an opportunity to deliver something meaningful for the organisation.